Although everyone signed a life-and-death agreement on the stage of the sect assembly, swords and knives are blind, and injuries and deaths are inevitable. But overall, most would still show restraint. Unless there was a deep hatred, or both parties were evenly matched and couldn't afford to hold back, severe casualties would likely occur.
In general, situations like the present, where one party has an overwhelming strength, rarely result in annihilation.
Although the world is vast, the world of martial arts is only so large!
If you can annihilate others today and build a reputation out of it, sooner or later someone will show no mercy towards you.
Therefore, the fights on the stage would usually involve self-restraint from both sides.
Especially on the first day of the competition, it was rare to have fights that intend to take lives.